Jim Cramer Says McDonald’s Turnaround Is Gaining Traction After Strong Earnings Report

By Mad Money
Published Wednesday, Nov. 4, 2026, 6:50 PM EST

McDonald’s ongoing turnaround efforts are officially beginning to bear fruit, signaling to investors that the fast-food giant could be poised for further upside ahead, according to CNBC’s Jim Cramer. Speaking on Wednesday’s broadcast of "Mad Money," the market commentator broke down the company’s latest financial results and explained why his earlier confidence in the stock during a period of heavy turbulence is finally paying off.

The optimism follows the release of McDonald’s third-quarter earnings report, which highlighted encouraging signs of progress within its crucial domestic market. For the quarter, U.S. same-store sales declined by just 0.2%. While technically a contraction, the figure outperformed Wall Street’s consensus expectations, which had anticipated a steeper 0.5% drop. More importantly, the domestic business managed to crawl back into positive growth territory in September, following consecutive declines in both July and August. That upward momentum did not stop at the end of the third quarter, with management noting that encouraging traffic trends have successfully carried over into October.

The market reacted swiftly and enthusiastically to the news. McDonald’s shares surged 6.5% during Wednesday’s trading session, extending a powerful rebound that has lifted the stock more than 20% from its early-October lows. Just a month prior, the fast-food icon was enduring a brutal stretch, having shed roughly a third of its market value from its all-time high achieved back in March. That steep descent was driven by a combination of weakening domestic consumer demand and intense, mounting competition from rivals, most notably a revitalized Burger King that has aggressively courted budget-conscious diners.

"We’re seeing progress for the Golden Arches, and that’s why the stock is doing so much better than it was just a couple of months ago," Cramer said during the show. "I still like McDonald’s — I’m glad I stuck with it, and I think you’re going to get higher prices for this stock."

Cramer’s endorsement marks a notable shift in sentiment from early October, when he famously characterized McDonald’s as a "show me" story. That cautious stance came on the heels of a disappointing September investor day, which had sparked widespread investor anxiety. Wall Street analysts and shareholders alike expressed deep concerns over the high costs associated with impending restaurant renovations, as well as whether franchise owners would fully support and finance the modernization plan. Despite those near-term headwinds, Cramer maintained at the time that the stock looked "tempting" at those beaten-down levels, asserting that he would rather be a buyer than a seller while the market was overly pessimistic.

A primary driver behind the company’s recent stabilization has been a renewed, aggressive focus on affordability. During the September quarter, McDonald’s deliberately pivoted its marketing strategy back toward value offerings, restoring digital promotions and rolling out popular $5 and $6 meal deals designed to lure inflation-weary consumers back through the doors.

Following the earnings release, McDonald’s CEO Chris Kempczinski appeared on CNBC’s "Squawk on the Street" on Wednesday morning to discuss the strategic shift with Cramer. "The interventions we made in the U.S. began to stabilize baseline guest counts, and we saw progress through the quarter," Kempczinski told him.

Despite the positive domestic momentum, the earnings report was not without its flaws, underscoring that the company’s turnaround remains a work in progress. McDonald’s ultimately missed top-line revenue expectations for the quarter. Furthermore, international results faced persistent drag, notably driven by weakness in the French market, which weighed on overall global performance.

To combat these lingering challenges and sustain its recovery, management has laid out an ambitious roadmap. McDonald’s plans to further expand its entry-level value offerings, deepen its digital promotional capabilities, and elevate overall food quality and customer service standards across its vast footprint. As part of this ongoing evolution, the company is actively testing two distinct new value menus with consumers, with the intention of selecting the stronger option and rolling it out nationwide in early 2027.

With the stock now trading comfortably above the lows it hit just weeks ago, Cramer offered a word of caution to investors looking to jump into the rally. He emphasized that future gains will no longer be driven simply by an attractive valuation, but will instead require flawless, sustained execution from corporate leadership and franchisees alike.

"McDonald’s shares were extremely compelling on a valuation basis at their lows a month ago — that’s why I had confidence sticking with the stock even when the fundamentals looked weak," Cramer noted. "With the stock well off its lows at this point, we’ll need to see continued execution for McDonald’s shares to continue their run back towards the highs set earlier this year."